Private credit lenders are navigating the impact of AI on their software investments, seeking to identify which companies will thrive and which will struggle. The 'SaaSpocalypse' scenario, which envisioned a catastrophic disruption of the software-as-a-service sector, is not anticipated. Instead, lenders are focusing on distinguishing between winners and losers in the evolving landscape.
Impact: The market may experience a period of differentiation among software companies, with some benefiting from AI integration and others facing challenges.
Not investment advice